website industry in india slow due to a mere 12% cagr in digital domains

Website Industry In India

There are at present more than 5 million registered digital domains in this country.

Out of these, only around 40% of URL’s are functional as websites, currently.

.com remains the most popular TLD (top level domain) with roughly 56% of market share.

The recent CAGR (Compound Annual Growth Rate) in the particular sector is a mere 12%.

A large portion of local websites are just like cars parked on the side of a road with a running engine but unwilling to move further.

website industry in india slow due to a mere 12% cagr in digital domains
Website Industry In India Slow

Under a low per capita income, many users here find portal construction unaffordable.

As a result of socialism and populism, politics affects internet sector too, in a detrimental manner here.

The taxation tariffs are lower than before.

But the level of vigilance is now so intense that one is paying most of that one used to save, in taxes.

Eradication of black market is important.

Since wealth concealment is down, one notices that instead of a reduction in tax payment outflows, one is paying more than ever before.

A country where businesses used to manage saving substantial money as reserves are facing a liquidity crisis now.

A scarce savings rate leads to dismal expansion and modernization.

That also hampers the growth in the number and quality of portal construction in the economy.

1st Positive For The Website Industry In India

Large Percentage of Small Businesses.

We are a country with a huge number undersized enterprises scattered around in each and every city.

Due to an enormous populace, salaries are meagre, hence job satisfaction levels are low.

The desire for owning a business or consultancy firm is common here.

Hence, the potential of expansion of web designing companies is quite promising.

It is more likely for a self-employed person or a professional to own a site, as compared to an executive for whom a free blog posting page might suffice.

This factor is truly a favorable one for development of the online computer based services in the nation.

1st Example of How Politics Affects Internet Service In India

Low Per Capita Income.

We are a country with a humongous population – Which is the second most prominent curse on us.

The existence of public sector undertakings is the biggest weakness and the main reason for national poverty.

politics affects internet service and economy due to socialism in our country
Politics Affects Internet Services In An Adverse Way In India

GST, Demonetization etc. even though important, fade in contrast to inevitable effectiveness of Disinvestment.

Countries like USA and China have outperformed as both have privatized their PSU’s in line with capitalism.

Keep restructuring, giving more funding to the PSU’s and continue designating honest officials for next 1000 years – But the net result overall, will be same.

They carry out magical experiments in reducing corruption, increasing efficiency, answerability and accountability in PSU’s.

However that magic has never worked anywhere in history.

However, being crippled with a minority in the upper house is bad luck for the current government.

Or else we would have undoubtedly seen real financial reforms during this term.

Just let the ITDC management take over the Taj Palace Hotel for two years and then see the result.

The hotel would run at a no-profit-no-loss basis and slowly go bankrupt within a decade.

Then the government would again find it difficult to reduce taxes, as they would require additional funds to help the hotel survive bankruptcy.

Then gradually that property will start running at a very slight profit, after a series of warnings from the authorities.

In such a situation the hotel will be a hurdle in generating foreign exchange earnings.

It will also contribute towards higher national unemployment due to zero expansion.

At the cost of honest PSU’s, you end up with a 1% GDP growth rate like in most of Western Europe.

People want to move to Switzerland, not Germany. Because the government does not run the railways, electricity etc. out there.

Price Sensitivity Due To An Immature Economy.

Agencies advertise and claim to build your company’s website for just Rs. 10000/-, as they know that the consumer is price sensitive.

They produce poor standard websites, in return.

One ends up wasting the money, even if it is a petty amount.

Such fraudulent activities by few website builders has sent a misleading signal to the public, at large.

Cheap sites are useless the features inside them have extreme limitations.

Local entrepreneurs spend on business travel, participation in trade fairs, hosting seminars, newspaper and TV advertisements, but find optimization expensive.

They feel surprised when any real professional supplies them his price list for developing an optimized portal.

Some would simply study things like smartphone compatibility requirements etc. and start thinking they know as much as any other mobile web developer !

But then all said and done, one cannot blame the masses. The crux of the problem is that small businesses cannot afford a quality website, here.

Whereas medium size enterprises are already under too much pressure due to a bad economy.

Whereas in a developed country, even a small size business is able to acquire a high-quality website.

One of the reasons being, that their currency has a value, whereas ours is worthless.

On the other hand, one often comes across customers obsessed with web design.

I don’t care – Give me a well-designed portal or else I’m going to some other web developer.

A common line companies building websites in India, may hear from a prospective client.

One needs to understand that web pages are useful only when they provide quality information, purposeful and optimized content !

Well-designed web pages with animated buttons, interactive menus and background animations attract online visitors – no doubt.

website construction companies cannot give equal priority to design and SEO
Website Construction Companies

Nevertheless, for that one needs an audience first.

How would the user know that you have a beautifully designed portal, until and unless he is able to find it online ?

One way to do that is opt for search engine advertising. That works.

But, Google or Bing will not put your URL address on page one in organic results just because you have highly well designed content.

Attractive web design, video animations, moving patterns and interactive layouts do not translate into user-oriented content.

So it humanly not possible for any web development company to give equal priority to the web design and optimization aspects.

Tip – Instead of beautifying web pages with decorated elements or simulation, insert a few image animations, marketing slides or animated videos instead.

However, by the time the prospect reaches back his office, he forgets the lesson.

You would waste all of your investment if you consider a web pages like an online brochure !

Reason being, one ends up showing such websites only to the customers walking-in to ones office.

The function of a domain is to bring new and unknown clients to your office, instead.

meaningful websites outrank designer websites on google and bing
Meaningful Sites Outrank Designer Websites on Google and Bing

2nd Reason For Hopes Of Progress In Website Industry In India

Big Economy.

Due to massive population, we are the 3rd biggest market in the globe.

A large population does more harm than good : Which is another matter.

However, this factor helps in enabling a huge demand of products and services, internally.

Another element for a likely continuation in progress of electronic services in the country.

Moreover, the number of existing sites does prove the point too.

2nd Reason For Pessimism In Indian Online Promotion Market

Insecurity Due to Muscle Power, Corrupt Police, Outdated Laws, Rupee Devaluation and a Communist Constitution.

Under a polluted business atmosphere, websites are the last priority for entrepreneurs in the nation.

Work is conducted in a non-professional way, as professionalism requires modernization and investment.

Then, lack of education and the influence of muscle power is a discouraging factor for establishments to upgrade processes.

Another influencing element restricting the growth of website construction companies.

Having the most corrupt police in the world, with Haryana, Delhi and Punjab being the spoilers, it brings an extreme sense of insecurity in the society.

Then outdated laws have made life very difficult to manage here.

It keeps changing every now and then.

This is exactly where the police exploit situations to their advantage, for bribes or else strategize to frame false charges against the innocent.

The more than 50-year-old constitution is flawed, illogical, communist and biased.

However, as the lower courts are over-burdened with pending lawsuits, they cannot afford looking at cases from a standalone point of view.

They end up painting everyone with the same brush and the innocent end up being the victims.

The higher judicature is not that much over-burdened; hence provides justice, in most cases, if not all.

However, the problem is that an innocent is crushed for no reason for years in the lower courts, by the time a case reaches the higher judicature.

Moreover, the mischievous, filing fake cases enjoy the show for a long period, by spending a very little amount on lawyer fee.

Or else tenants illegally occupying and sub-letting premises for decade is a usual phenomenon here.

The problem is that we are very weak in controlling what we should curtail i.e. things like :

  • Refusal by tenants to vacate properties rented by them.
  • People finding it impossible to obtain a divorce.
  • Police brutalities and blackmail.
  • Real estate developers forfeiting investors funds despite delay in construction.
  • A buyer refusing to make payment to a seller.
  • Cheque bouncing cases.
  • Schools applying extreme pressure on children.
  • Hospitals minting money by intentionally prolonging treatments.
  • Copyright frauds.
  • The schedule caste having the privilege of framing bogus cases against anyone, anywhere and anytime.
  • Labor union strikes.
  • Factories running inside residential areas.
  • And above all an unbelievably quickly growing population.

All such problems translate into creating an ugly atmosphere of pull-culture, black money generation and the never ending greed for hoarding.

Unfortunately such an environment disperses the most hostile atmosphere curtailing the advancement of the website industry in India.

Sadly, we are world-class administrators on matters where the government has no moral right to involve itself-in :

  • Running PSU’s.
  • High tariffs.
  • Export and import controls.
  • Developing infrastructure.
  • Petrol retail selling.
  • Forex exchange rate controls.
  • Unfair regulations by having a dominating role in banking, oil, electricity, railways, infrastructure and what not.

But the current government is not the culprit. It’s just that the governments in the past between 1947 till 1991 created the entire mess.

One saves for emergencies instead of investing in technology.

A hard daily routine leaves no scope for ambition, enthusiasm, modernization drive or risk-taking measures.

A classic illustration of how politics affects internet services well as all sectors in a damaging way.

3rd Encouraging Aspect For Website Industry In India

GST, Aadhaar Card and Demonetization.

Economic reforms like Goods and Sales Tax, Aadhaar Card and Demonetization are slowly reducing the ratio of black money component in transactions.

Hence online payments in banking, shopping, guest houses and travel bookings and advertising are on the rise.

Cost of trading and manufacturing is rising, which is a consequence of an additional tax outflow.

The same is forcing corporates to reduce wasteful expenditure.

Consumers have started realizing that websites are a cheaper mode and yield better sales and revenues in contrast to traditional marketing mediums.

Businesses are hiring lesser employees and procuring improved and optimized websites for better sales.

Such changes are luring the competitors to have own sites too.

One more determinant for an attainable improvement of online computer service providing companies in India.

3rd Element Why Politics Affects Internet Services In The Nation

Low Bandwidth Penetration.

There are at present around 350 million online users here.

However, the percentage of net-connectivity penetration is muted.

The overall share of cyberspace accessibility is only about 30% in our country.

If one argues that it is low in India because of huge population then why is china in the above 50% broadband penetration bracket ?

Shockingly, the leadership again steps in at this point by taking steps to invest in digital infrastructure for small towns.

But the rural areas have not progressed due to the heavy involvement of government out there. They cannot afford to buy data packages.

4th Facet For Progression Of SEO Service Providers In India

Competition, Traffic, Costs and Time Shortage.

Owing to a growing population, competition is also increasing.

Hence, the buyer is getting inquisitive for extra transparent information.

Websites provide that in a far better way as in comparison to the common medium – phone calls and meetings, used for marketing.

Additionally, people are navigating mobile shopping portals for placing orders.

The habit of calling suppliers for buying products and services is slowly vanishing.

The increasing road traffic is forcing buyers to compare products on the web, rather than meeting suppliers and agencies through business lunches.

4th Obstacle for Fast Growth Of The Website Industry In India

Low Bandwidth Speed.

We rank at the 90th position globally, in terms of net-connection speed.

Even behind Vietnam, Sri Lanka, Costa Rica, Bhutan and Pakistan.

The telecom giants are made to cough up huge sums to the government for obtaining licences.

Which eventually leaves them no other choice other than using sub-standard copper in wiring.

A classic specimen for why politics affects internet services badly, here.

5th Advantage This Country Carries In Cyberspace Zone


New cyberspace ventures have suddenly emerged lately.

The extraordinary success of privately owned groups, selling retail items, cab services, food delivery and travel bookings is surprising.

Such developments are a beneficial for portals, as additional people get used to browsing.

5th Drawback For The Website Industry In India

Low Profit Margins.

Due to a heavy population, competition is severe.

Hence, the businessman ends up concentrating on quantity rather than quality.

That results in a focus on turnover rather than profit margin.

And obviously expansion is not possible without profits.

The thought of modernization becomes the last priority.

This is another factor hurting the website industry in India.

6th Benefit Available To Web Developers In The Nation

Young Population.

We are a nation with a young citizenry, as 65% of us are below the 35-year mark.

This opens up opportunities for web development too, as the young generation is cognizant of the strength of online marketing.

A reason for optimism on the betterment of website industry in India.

6th Barrier Why Politics Affects Internet Services In Our Country

Bureaucratic Bodies like TRAI etc.

This factor is a major illustration of why bureaucracy harms our economy.

TRAI keeps coming up with fancy directives thrown at the ISP’s.

trai is an example how politics affects internet services in our nation
TRAI’s Interference In The Telecom Sector

Corruption or inefficiency are not the only two consequences of PSU’s.

In addition, these institutions have spoilt the local commercial atmosphere, as they waste natural resources and capital.

Again politics affects internet services in our country.

7th Positive Factor For Website Construction Companies In India

Abundance of Skilled Manpower.

We produce a large number of software engineers and IT related work-force every year.

Regardless of the fact that the real skilled ones migrate to USA – which is fair.

Their enterprises come here and make profits and we go there for jobs to make a living.

Fair deal.

Still the ones who stay back, are extremely talented – which is an encouraging sign for expansion of website industry in India.

Of course, such consultants won’t build a website within a Rs. 10000 budget for you.

7th Barrier For The Website Industry In India

The Attitude of Dealing Within Own Circle.

Some people prefer working for clients within the business group they themselves are a part-of.

Video below – Websites help companies meet unknown customers as compared to modes like networking within own official circle used in traditional sales methods !

Websites Help Professionals Grow Faster

They find it easy to manipulate old clients, sweet talk with friends and relatives, as it is easy to do so over a cup of coffee.

An unknown buyer would judge a supplier, based on his merit.

That scrutiny is something that local entrepreneurs avoid, often.

A website provides online business exposure for tradesmen throughout the world.

Chances of gaining fresh untapped buyers are bright.

But that, for some local firms is a disadvantageous situation instead of an opportunity.

And that is another determinant for the sluggish advancement of the website industry in India.

Having said that, there are some valid reasons for businesses avoiding dealing with new customers :

Difficulties in Payment Recovery.

Problems in recovering payments from fresh buyers and unknown clients is another reason why people find websites as useless here.

Entrepreneurs are not too keen to find new clients.

Claiming payments for goods and services supplied to known buyers is easier as compared to recoveries from newly procured customers online.

The legal system takes years and years in cases of cases filed for cheque bouncing.

Another reason why politics affects internet service in our nation.

Lack of Capital.

Due to heavy delays in payment recoveries, most businesses are on the back-foot all the time.

One has no other choice but to pay defensive by going slow on expansion by exploring new avenues for sale.

Because of reckless spending exercises, the fiscal deficit is always high, resulting in exorbitant borrowing rates.

The private enterprises are the ones which are efficient because there is too much at stake for the owner.

Unlike a bureaucrat, who plays around with the taxpayers hard earned income and the maximum possible success is not a necessity for him.

He gets rewarded by the administration even if performing at a slightly above average level.

To conclude : One may say that the intent of all governments since 1991 has been good – broadly speaking.

But none apart from the Vajpayee or Narashimha Rao, aggressively touched upon the indispensable issue of privatization.

Owing to heavy involvement of PSU work culture, bureaucracy and regulations on corporate activities – Networking, contact building and pull has spread in the private sector too.

One Response

  1. sid September 19, 2017

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